The new minimum monthly wage is RM900 for Peninsular and RM800 for Sarawak, Sabah and Labuan.
PM Datuk Seri Najib Razak informed the raise of minimum wage for private sectors last night. There will be a six months grace period to implement the new ruling for large scale companies whereas micro enterprises will be given a year. The PM addressed the raise as “game-changer to transform the labour market”.
The raise will affect all economic sectors, except for domestic service such as maids and gardeners.
“So the minimum wage will not burden employers or see workers losing out, part of allowances or fixed cash payments will be allowed in calculating the minimum wage,” he stated last night, on the eve of Labour Day (May 1st).
The raise went through sticky discussions since Putrajaya aimed to implement the raise by the end of last year. The government reportedly received pressure from the employers who were not ready to implement the raise, resulting in upset from the trade unions who have long been fighting for the much-deserved raise.
Furthermore, PM Najib said that the government is aware of the demand for the minimum wage be set from RM1,200 to RM1,500 yet such raise is not possible at the moment as it would harm the national economic stability, labour market, and foreign investments.
“If this happens, the industry cannot operate properly and many workers will lose their jobs. The government cannot allow this to happen because it will be detrimental to the welfare of the workers as well as to the nation’s interest,” he said.